MF Global Hit with Securities Fraud Class Action Lawsuit

By Sarah Mirando | November 13, 2012

Category: Stocks & Securities Class Action Lawsuits

By Andrea Gressman

It has only been a year since the MF Global collapse and on Monday, November 5, 2012, a group of former MF Global investors filed a class action lawsuit. The MF Global lawsuit is a consolidated amended class action lawsuit and was filed in federal court. The MF Global securities lawsuit named Jon Corzine, the former MF Global CEO, as well as other former MF Global officers and directors, CME Group, and PricewaterhouseCoopers as the defendants.

The MF Global securities lawsuit claims a number of violations, including the following:

* A violation of the Commodity Exchange Act
* A breach of fiduciary duty
* Negligence
* Tortious interference of contract
* Business advantage and conversion

The securities fraud lawsuit attorney working on behalf of the MF Global lawsuit plaintiffs was reported in saying, “The defendants in this lawsuit acted wrongfully by not fulfilling their common law and statutory duties to protect property and segregate funds owned by the former customers of MF Global Inc. Through this lawsuit, we aim to recover hundreds of millions of dollars in damages from those who are responsible for this atrocity to return to the victims of their actions, MF Global’s former customers. Our suit also seeks recoveries on behalf of the general creditors of MF Global Inc., who were also injured as a result of the misconduct of the defendants.”

Despite the fact that there have been some payments made to cover some of the investor’s expenses, it has been reported that up to $2 billion has yet to be paid.

The MF Global class action lawsuit claims that a number of people contributed to the charges being made against MF Global. The following people have been specifically named as defendants: former CFO Henri Steenkamp, former COO Bradley Abelow, former General Counsel Laurie Ferber, former Assistant Treasurer Edith O’Brien, former CFO Christine Serwinski, former Global Treasurer David Dunne, former Global Treasurer Vinay Mahajan, MF Global’s former independent auditor PwC, and MF Global’s former regulator CME Group.

The MF Global lawsuit goes on to explain that PwC is also liable because they did not perform adequate audits of the internal controls responsible of customer funds, which is required by law. It is also claimed that the CME did not properly regulate and provide proper supervision of MF Global Inc. despite knowing that the company did not comply with the obligations with regards to the customer funds segregation.

The securities lawsuit attorney was also reported in saying, “We are pleased that our lawsuit is moving forward with the filing of this consolidated amended complaint. Over a year ago, the management of MF Global employed recklessly permissive procedures and directed, caused, authorized or allowed transfers of over $900 million in customer property for use by the firm, while PwC and CME Group enabled this behavior. It is time that these parties pay for their improper behavior.”

The securities fraud lawsuit attorneys working on behalf of the plaintiffs in this class action lawsuit have entered into a cooperate agreement with the Trustee of the liquidation of MF Global Inc., James W. Giddens. Under this agreement there are certain claims brought against the company’s former directors and other officers, as well as PwC, that the MF Global Inc. lawsuit plaintiffs are pursuing in addition to the class action lawsuit. The MF Global Inc. lawsuit attorneys are cooperation with the Trustee and any of the money recovered from the process will be distributed to those that are a part of the class action lawsuit.

If you were the victim of securities fraud, stock fraud, or investment fraud, you need to know your legal options. Visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation page for additional details. Receive your free consultation and speak with a qualified securities lawsuit attorney.